European shares rise in early trade; banks gain

European shares rose early on Wednesday, adding to strong gains in the previous session, and tracking Wall Street higher after US housing data beat forecasts and Federal Reserve capital proposals for banks proved less onerous than some had feared.

At 0808 GMT, the FTSEurofirst 300 index of top European shares was up 0.7 percent at 983.30 points, after rising 2 percent on Tuesday, following a successful Spanish debt auction, and signs of improved economic prospects in Germany.

“If this recent positive trend in the data continues, it could drive the market higher,” said Daniel McCormack, strategist atMacquarie.